Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for FUTU HOLDINGS LTD ADS (FUTU) for the 27-Aug-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. FUTU was recently trading at $105.73 and has an implied volatility of 109.80% for this period. Based on an analysis of the options available for FUTU expiring on 27-Aug-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $76.62-$105.73 at expiration. In this scenario, the average linear return for the trade would be 56.87%. Big -8.41% Change: After closing the last trading session at $115.44, FUTU HOLDINGS LTD ADS opened today at $106.50 and has reached a low of $105.00. Trade approach: A movement as big as -8.41% is a significantly bearish indicator, so this trade is designed to be profitable if FUTU maintains its current direction and does not revert back to pricing on the bullish side of $105.73 on 27-Aug-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit. Upside potential: Using this bearish strategy, the trade would be profitable if FUTU HOLDINGS LTD ADS closes at or below $108.10 on 27-Aug-2021. Based on our risk-neutral analysis, there is a 52.74% likelihood of this return. Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment. To analyze this trade in depth, please visit the Quantcha Options Search Engine.